PUBLISHER: The Business Research Company | PRODUCT CODE: 1760232
PUBLISHER: The Business Research Company | PRODUCT CODE: 1760232
Quantum annealing is a quantum computing method used to solve optimization problems. It utilizes quantum mechanics, specifically quantum superposition and tunnelling, to simultaneously explore multiple solutions and identify the system's lowest energy state, which represents the optimal solution. Quantum annealing is applied to complex problems in fields such as machine learning, logistics, and financial modeling.
The primary products in the quantum annealing market include quantum annealing hardware, quantum annealing software, quantum annealing systems, quantum simulation platforms, and quantum optimization tools. Quantum annealing hardware refers to the physical systems and components that facilitate the quantum annealing process, which is designed to tackle optimization problems. Deployment options include on-premises, cloud-based, and hybrid solutions, with applications spanning optimization, machine learning, material science, financial modeling, and more. End-user industries include automotive, healthcare, finance, energy, and others.
The quantum annealing market research report is one of a series of new reports from The Business Research Company that provides quantum annealing market statistics, including quantum annealing industry global market size, regional shares, competitors with a quantum annealing market share, detailed quantum annealing market segments, market trends and opportunities, and any further data you may need to thrive in the quantum annealing industry. This quantum annealing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The quantum annealing market size has grown rapidly in recent years. It will grow from $0.54 billion in 2024 to $0.63 billion in 2025 at a compound annual growth rate (CAGR) of 17.1%. The growth during the historic period can be attributed to several factors, including the rising demand for optimization solutions, advancements in quantum computing algorithms, an increasing need for enhanced computational power, the expansion of artificial intelligence applications, and significant investments in quantum research from both the government and private sector.
The quantum annealing market size is expected to see rapid growth in the next few years. It will grow to $1.17 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. The growth during the forecast period can be attributed to factors such as the increasing adoption of quantum computing for problem-solving, rising investments in quantum technologies, the demand for faster and more accurate optimization solutions, collaborations between quantum hardware and software companies, and the integration of quantum annealing in industrial applications. Key trends in the forecast period include a focus on hybrid quantum-classical systems, the development of quantum annealing software platforms, the growing use of quantum annealing in logistics and supply chain optimization, improved accessibility to quantum computing through cloud services, and the emergence of quantum annealing applications in pharmaceuticals and drug discovery.
The rising demand for high-performance computing solutions is expected to drive the growth of the quantum annealing market. High-performance computing (HPC) solutions involve the use of powerful computers, networks, and software to solve complex computational problems much faster than conventional systems. The growing demand for HPC is fueled by the expansion of big data analytics, which requires robust systems to efficiently process large datasets. Quantum annealing plays a critical role in HPC by speeding up the search for optimal solutions, making it ideal for challenging tasks in logistics, finance, and drug discovery. It enhances computational performance by leveraging quantum mechanics, thus improving the speed and efficiency of problem-solving. For instance, the European Commission, the executive body of the European Union, allocated $7.5 billion (€7 billion) to develop high-performance computing infrastructure, aiming to become operational by late 2024. As a result, the increasing demand for HPC solutions is driving the growth of the quantum annealing market.
Innovative architectures are advancing quantum optimization in the quantum annealing market. Leading companies are focused on developing cutting-edge products, including superconducting technology combined with ParityQC architecture, to improve the scalability and efficiency of quantum systems. This combination ensures more stable qubit interactions, better error correction, and faster problem-solving for optimization tasks. For example, in June 2023, NEC Corporation, a Japan-based electronics company, partnered with Tohoku University, a research university in Japan, to develop an 8-qubit quantum annealing machine that uses superconducting parametrons and the ParityQC architecture. The machine, accessible online for joint research on combinatorial optimization problems, enhances qubit coherence and reduces error rates during quantum computations by utilizing the unique properties of superconducting parametrons.
In July 2024, Kipu Quantum, a Germany-based quantum computing company, acquired the PlanQK platform from Anaqor AG for an undisclosed amount. This acquisition allows Kipu Quantum to accelerate the development of industrial quantum solutions and expand its quantum technology portfolio. Anaqor AG, a Germany-based company, is focused on advancing quantum annealing technologies for optimization and simulation.
Major players in the quantum annealing market are Microsoft Corporation, Hitachi Ltd., Lockheed Martin, Honeywell International Inc., Fujitsu Limited, Hewlett Packard Enterprise (HPE), Toshiba Corporation, Q-CTRL Pty Ltd., Amgen, Cambridge Quantum Computing Ltd., Atos SE, IonQ Inc., NEC Corporation, IBM Corporation, Xanadu Quantum Technologies Inc., Google LLC, 1QBit Information Technologies Inc., Rigetti Computing, Quantum Circuits Inc., D-Wave Systems Inc.
North America was the largest region in the quantum annealing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in quantum annealing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the quantum annealing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The quantum annealing market consists of revenues earned by entities by providing services such as quantum hardware access, algorithm development, optimization and cloud-based quantum computing. The market value includes the value of related goods sold by the service provider or included within the service offering. The quantum annealing market also includes sales of quantum processors, quantum chips and quantum amplifiers. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Quantum Annealing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on quantum annealing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for quantum annealing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The quantum annealing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.